Revision: April 18, 2024, 9:57 a.m.
HB 558-FN - AS AMENDED BY THE HOUSE
3Jan2024... 2321h
2023 SESSION
23-0207
09/05
HOUSE BILL 558-FN
AN ACT requiring the department of energy to initiate a microgrid study.
SPONSORS: Rep. Ammon, Hills. 42; Rep. Potucek, Rock. 13; Rep. Edwards, Rock. 31; Rep. Ankarberg, Straf. 7; Rep. D. Thomas, Rock. 16; Sen. Watters, Dist 4
COMMITTEE: Science, Technology and Energy
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AMENDED ANALYSIS
This bill requires the department of energy to initiate a study to investigate the potential benefits, risks, and key considerations around developing a framework for electricity microgrids in the state.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
3Jan2024... 2321h 23-0207
09/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT requiring the department of energy to initiate a microgrid study.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Department of Energy; Microgrid Study; Department Investigation; Report.
I. Within 120 days of the effective date of this section, the department of energy shall initiate a proceeding to investigate the potential benefits, risks, and key considerations around developing a framework for electricity microgrids in the state. In so doing, the department shall consult with electric distribution utilities, microgrid technology companies, distributed generation project developers, high density load businesses, municipalities, one or more state universities, and any other relevant entities.
II. The department’s investigative proceeding shall examine and make recommendations concerning:
(a) Definitions and technical requirements to qualify as a microgrid.
(b) Utility partnerships with municipalities or businesses to develop microgrids that improve reliability and/or avoid costly infrastructure upgrades.
(c) Evaluation criteria and approval process for utilities to propose a limited number of microgrid pilot projects to the public utilities commission annually.
(d) Interconnection with the main power grid including engineering reviews, utility system reliability and operational impacts, cost allocation, and coordination with utilities.
(e) Cybersecurity and physical security standards for microgrids.
(f) Potential benefits of microgrids for grid resilience, peak load reduction, and energy costs.
(g) The role of microgrids in supporting economic growth, clean energy innovation, and reliable electricity service.
(h) Existing regulatory or bureaucratic barriers to microgrid adoption, and changes required to mitigate them.
(i) Any other relevant issue raised in the department’s investigative proceedings.
III. The department shall report its findings and recommendations to the legislature no later than one year after initiating the study. The report shall provide guidance to the legislature and the public utilities commission on developing a microgrid pilot program that balances economic development, grid stability, security, costs, and potential impact on rates for existing utility customers and microgrid participants.
2 Effective Date. This act shall take effect 60 days after its passage.
23-0207
Revised 4/16/24
Amended 2/29/24
HB 558-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2023-2321h)
AN ACT requiring the department of energy to initiate a microgrid study.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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Estimated State Impact - Increase / (Decrease) | ||||||
| FY 2024 | FY 2025 | FY 2026 | FY 2027 | ||
Revenue | $0 | $250,000 | $0 | $0 | ||
Revenue Fund(s) | Utility Assessment
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Expenditures | $0 | $250,000 | $0 | $0 | ||
Funding Source(s) | Utility Assessment
| |||||
Appropriations | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None
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• Does this bill provide sufficient funding to cover estimated expenditures? [X] N/A • Does this bill authorize new positions to implement this bill? [X] No | ||||||
METHODOLOGY:
This bill requires the Department of Energy to conduct an investigative proceeding to investigate the potential benefits, risks, and key considerations around developing a framework for electricity microgrids in the State. The bill lays out the specific areas that the investigative report is required to include, with a report date of no later than one year after initiating the study. The Department of Energy indicates state expenditures would increase by an indeterminable amount. While the scope and topics vary, based on recent experience with investigations, the Department anticipates that this investigation would cost upwards of $250,000. The language of the bill permits the Department to assess electric distribution companies for the costs associated with this investigation.
There would be no impact on county or local revenues or expenditures.
AGENCIES CONTACTED:
Department of Energy